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26 Cards in this Set

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  • Back
Contribution Margin
Sales less Variable Costs.
Margin Percentage
Contribution Margin divided by Sales.
Variable Costs
expenses that are tied to the sale of each
Period costs
people that are not tied directly to the cost of producing a unit — administration, salespeople, and managers, for example.
Net Margin
Contribution Margin less Period Costs. Put simply, it is what the product contributes towards profits.
Emergency Loans
In the real world emergency loans do not exist. When you run out of cash, you have "a liquidity crisis", "Chapter 11", or simply
Working Capital
Current Assets minus Current Liabilities
Current Ratio
Current Assets / Current Liabilities = (Cash + A/R + Inventory) / (A/P + Current Debt)
Days of Working Capital
Working Capital / (Sales/365).
Forecasting
your ability to forecast demand, build adequate inventories to satisfy demand, and yet not accumulate excessive inventory
Promotion
driven by your promo budget, creates product awareness before customers shop. If customers are not aware of the product, they will not buy
Place
driven by your Sales budget. It examines the question, "How easy is it for customers to work with you during and after the sale?"
Productivity
the productivity of your workforce through the course of the simulation.
The Financial Structure category
the Financial Structure of your company — its relationship between Debt and Equity
Leverage
Total Assets/ Total Equity (according to CapSim)
The Assets
The property, plant, and equipment of "the Company", and they are listed on the left side of the Balance Sheet
The Liabilities and Owner's Equity
the right side represent the people who paid for the Assets and their current stake
Sides of the Balance Sheet
the left is "what is owned"; the right is "who owns it"
EBIT
Earnings Before Interest and Taxes
ROE
Profits/Equity = Profits/Assets * Assets/Equity = ROA * Leverage
EPS
Profits/Shares Outstanding
Cumulative Profits
the sum of all company profits;
Cumulative Free Cash Flow
the sum of all of the Free Cash Flows since you took over management of the company;
Market Capitalization
the current value of your stock price times shares outstanding.
Return on Sales (ROS)
Net profit, generated each year, divided by total sales for the same period.
Turnover
Sales, generated in a particular year, divided by the value of total assets for the same period.